DELTA CASUALTY COMPANY ORDERED INTO LIQUIDATION

Chicago, Illinois -- Illinois Insurance Director Nat Shapo announced today that the Cook County Circuit Court issued an Order of Liquidation with a finding of insolvency against Delta Casualty Company on December 4, 2001, following a determination by the Department of Insurance that the company was insolvent by more than $1 million

Delta Casualty began business in January 1967, and is licensed in Illinois, Florida, and Iowa. The company wrote primarily commercial automobile liability, physical damage, and workers compensation coverages for cab companies in the Chicago metropolitan area, as well as nonstandard private passenger automobile business in the State of Florida. The company discontinued all of its commercial cab business in December 2000 and its nonstandard Florida automobile business in March 2001. At December 31, 1999, and December 31, 2000, the company reported direct written premiums of $6.8 million and $8.8 million, respectively

Any remaining business currently active in a state in which the company was licensed will be canceled 31 days from the date of the entry of the order of liquidation, the policy's expiration date, or when canceled by the named insured, whichever occurs first

The Illinois Insurance Guaranty Fund will be responsible for the covered claims of Delta Casualty's Illinois policyholders. The order of liquidation contains an injunction prohibiting suits against Delta Casualty outside of the liquidation proceedings

Liquidation proceedings are being handled on behalf of the Director of Insurance by the Office of the Special Deputy Receiver, 222 Merchandise Mart Plaza, Suite 1450, Chicago, Illinois 60654; (312) 836-9500.